Sega Sammy (6460) Q4 2026 earnings summary

Executive summary

• FY2026/3 net sales rose 13.7% to ¥487.5B, but a net loss of ¥5.7B was recorded due to significant impairment losses on Rovio and Stakelogic, despite strong Pachislot & Pachinko Machines and record-high gaming equipment sales.

• Operating income declined 2.1% to ¥47.1B, with extraordinary losses totaling ¥58.8B.

• Adjusted EBITDA dropped sharply to ¥16.6B from ¥62.2B the prior year, mainly due to impairment losses.

• The company forecasts FY2027/3 sales of ¥510.0B, with operating income expected to decrease to ¥44.5B and net income rebounding to ¥32.5B.

• Strategic focus includes strengthening transmedia expansion, launching new flagship IPs, and maintaining a ¥55/share dividend.

Financial highlights

• Sales rose 13.7% year-over-year to ¥487.5B, but operating income fell 2.1% to ¥47.1B.

• Ordinary income increased 2.1% to ¥54.2B.

• Adjusted EBITDA dropped to ¥16.6B from ¥62.2B.

• ROE turned negative at -1.6% (from 12.2% last year), with equity spread also negative.

• Cash and deposits decreased by ¥47.0B, mainly due to acquisitions and share buybacks; year-end cash and equivalents were ¥153.8B.

Outlook and guidance

• FY2027/3 sales are projected to increase to ¥510.0B, with net income rebounding to ¥32.5B and adjusted EBITDA to ¥64.0B.

• Operating income is expected to decline to ¥44.5B due to higher costs and upfront investments, especially in Gaming.

• Four new Full Game titles and expanded licensing revenue are anticipated.

• Shareholder returns are forecast at ¥11.2B, with a dividend of ¥55/share.